SNAP

SNAP
is a food program for low-income individuals and families[i].
SNAP stands for Supplemental Nutrition Assistance Program and was formally
called the food stamp program. It is run by the United States
Department of Agriculture (USDA). Participants receive a monthly debit card (Electronic
Benefit Transfer - EBT Card) that can be used to buy food in most grocery
outlets. The cards are generally not good for non-food
items. Families and individuals qualify for the program
if they are participants in the SSI or TANF programs or if they have qualifying low-income. This
means gross income below 130% of the poverty threshold or net income below 100% of
the poverty threshold. Gross income includes wages and
salaries, but excludes most government and charitable benefits.
Net income is calculated with a complex formula deducting items such as a
standard deduction, child support, medical deduction and other
items. In addition to low-income, participants must also have “Resource”
value of below $2,250 per household unless at least one member of the
household is over 60 years old whereby the value is raised to
$3,250. Resource value generally includes cash and investments but
excludes retirement savings, educational savings, a house and a
car.

SNAP benefits are graduated to income levels –
that is the more an individual or family earns the lower the SNAP
benefit. The maximum benefit available is $194 per month for a
household of one and increases about $150 for each additional household
member. The SNAP program spent $82.6 billion in fiscal year 2013[ii].

Participation in
SNAP Over The YearsThe graph above compares the number of
people in poverty to the number of participants in the SNAP Program[iii].
The percentage of the population in poverty has been fairly
consistent over the years at between 12% - 15% of the population (see Poverty and Spending Over the Years). The absolute number of
people in poverty has grown as the population of the United States as
grown. Participants in the SNAP program in relation to the number in
poverty, has risen or shrunk over time as SNAP eligibility has
been loosened or tightened. Most recently the
increase in participants as compared to the increase in those in poverty
is due to the increase in eligibility in the 2008 Farm Bill (see history below)
and efforts to expand the program to more of the population in
poverty.

Work
RequirementGenerally able-bodied adults between 18 and 50
who do not have any dependent children can get SNAP benefits only for 3 months
in a 36-month period if they do not work or participate in a workfare or
employment and training program other than job search. However, this
requirement is waived in some locations.

Program CharacteristicsThe most recent comprehensive report on SNAP,
issued in February, 2014, reported the following characteristics of the program
for the year 2012[iv]:

Overall 55% of SNAP
beneficiaries were adults and 45% were children.

18% of SNAP payments went
to those with income above the poverty line and 42% went to
those less than half the poverty line.

About 40% of households
had income low enough to receive the maximum benefit.

When SNAP benefits are
added to gross income, 13% of SNAP households move above the poverty line
and 14% of SNAP
households move above 50% of the poverty line.

The percent of
households with zero gross income has gone from 10% in 1992 to 21% in
2012.

SNAP
Fraud The GAO estimates that 3.4% of SNAP payments are
made improperly – See Welfare Fraud Page. This totals $2.7 billion in improper
payments in 2013. In addition the USDA estimates that 1.3% of SNAP
payments are included in trafficking by the retailer whereby SNAP benefits are
traded for cash, usually at a discount[v].

SNAP
HistoryThe following history of SNAP was adapted from
the website Snap to Health[vi]
and The USDA – A short history of SNAP[vii].

In 1964, The Food Stamp Act was passed as a part
of President Lyndon Johnson’s “Great Society” Program. The goal was to
achieve a more effective use of agricultural overproduction, improve
levels of nutrition among individuals with low-incomes and strengthen the
agricultural economy. The Food Stamp Program required the purchase of
“stamps” or coupons at benefit levels similar to what a household would
normally allot to food expenditures. A “bonus” amount (benefit), which was
determined based on a participant’s income level, was awarded to enable
the purchase of a low-cost nutritionally adequate diet as defined by the
Economy Food Plan.Major revisions were made to the program in the
Food Stamp Act of 1977, including the elimination of the requirement that
participants purchase the stamps; the establishment of uniform national
standards of eligibility; the expansion of the program to minority communities;
more federal support for the implementation of the program at the state level;
and restricted access to benefits for students enrolled in a university.

In 1981 the Food Stamps Program experienced
severe budget cuts during the Administration of President Ronald
Reagan. Some funding was restored to the Food Stamp Program in 1988 and
1990. During this time period, efforts were made to streamline
administration of the Food Stamp Program (including the introduction of an
early form of the Electronic Benefit Transfer (EBT) card and to expand access
for eligible participants. The growth of the program in the early 1990's
was countered by a pull-back in the program in the late 1990’s, as funds were
converted into block grants to the states and stricter requirements were
placed on food stamp usage and eligibility.Significant changes were made to the Food Stamp
Program in the early 2000's. Food stamp participation increased
dramatically, and eligibility was extended to qualified immigrants and children
who were 18 years old and younger. Also during this time period, the stamps
used for food purchases were replaced with EBT cards. The cards, modeled after
credit or debit cards, transfer government benefits from a federal account to
the SNAP retailer.

The 2008 farm bill was enacted through an
override of President Bush’s veto. The new law increased the commitment to
federal food assistance programs by more than $10 billion over 10
years. In efforts to fight stigma, the law changed the name to the
Supplemental Nutrition Assistance Program or SNAP. Benefits were augmented
for most households on Oct. 1, 2008, due to the increase in the minimum
benefit and standard deduction and elimination of the cap on the deduction
for child care expenses. The new law also expanded eligibility by indexing
the asset limits to inflation and excluding combat pay and most retirement
and education accounts as countable resources. SNAP
Expenditures Over The YearsThe graph below shows SNAP expenditures per
year adjusted for the impacts of inflation (stated in 2013 dollars). In 2013 about 95% of SNAP expenditures were for benefit payments and
about 5% for program administration, education and training[viii]. SNAP
expenditures have fluctuated over the years as the program benefits and
eligibility were expanded or contracted. The graphs presented below show
the number of participants and the average benefit payments over the
years.

Average SNAP Benefit Over the YearsThe graph below presents the average SNAP monthly payment to participants adjusted for inflation to 2013 dollars [ix]. SNAP Benefits remained fairly flat at about $100 per month until 2008 whereby they have increased almost 40%. This is the result of the liberalization of benefits in the 2008 Farm Bill, as described above.

[i] For more information see United States Department of Agriculture (USDA), SNAP, Eligibility [Internet]. Available here.

[ix] Represents SNAP program costs for each year, adjusted for inflation divided by number of participants. The methodology of calculation and source of data is described on the Poverty and Spending and Over the Years Page.